Climate change is coming for America’s property market

FOR DECADESGDPGDP Americans have been moving to beautiful places that are vulnerable to extreme weather. Florida, once a swampy frontier, is now America’s third-most populous state. It is also the state most often hit by hurricanes. By 2015, the Atlantic and Gulf coasts boasted more than $13trn of real estate. Look West and the story is similar. Homes are proliferating in the wildland-urban interface, where nature and development anxiously coexist and wildfire season seems never to end.It is climate change that makes extreme weather more common. But the financial cost of storms and fires depends, more than anything else, on how many homes people choose to build in risky places. After adjusting for inflation, there have been more billion-dollar disasters so far in 2023 than any year since America’s National Oceanic and Atmospheric Administration began keeping records. Losses as a proportion of have kept stable over the past four decades. But there are big local exceptions: last year hurricane damage cost Florida between 7.5% and 10% of the state’s .